BNP Paribas Wealth and Asset Management unit has reported a significant increase in its second quarter pre-tax income to 196million ($262m) up 15.2% from 170m ($227m) in the first quarter of 2014.
Wealth and Asset Management’s revenues were up 2.3% to 710 due to growth at Real Estate Services and Asset Management of the group’s Investment Solution unit.
Assets under management reached 883 billion as of 30 June 2014 and were up 5.2% compared to the same period last year. They were up 3.5% (29bn) compared to 31 December 2013 due in particular to a +26.7bn performance effect on the back of the favourable evolution in equity markets and interest rates, the bank said.
Net asset flows increased to 1.6bn in the first half of this year with a slight overall asset outflow in Asset Management (positive asset inflows in bond funds), limited asset inflows in Wealth Management driven in particular by Asia, France and Italy and, lastly, substantial asset inflows in Insurance, especially in Italy, France and Asia.
However, the unit reported a rise in operating expenses up 3.0% from the first quarter of 2014 for wealth and asset management as a result of the impact of business development investments in the two areas.
Overall, BNP Paribas posted a record 4.32bn loss ($5.76bn) in the second quarter after it was fined $8.9bn for violating US sanction controls in Sudan and other countries.
The bank’s revenues totalled 9,568 million euros, down 2.3% compared to the second quarter of this year.